Financial Performance - For the year ended December 31, 2021, the Group recorded total revenue of approximately RMB10,369 million, representing a year-on-year increase of approximately 149%[26]. - Gross profit for the same period was approximately RMB2,400 million, reflecting a year-on-year increase of approximately 58%[51]. - The Group's net profit increased by 72% year-on-year to approximately RMB1,102 million for the year ended December 31, 2021[51]. - The revenue from property sales increased by approximately 149% year-on-year to approximately RMB10,369 million, with an average selling price (ASP) of approximately RMB10,877 per sq.m., representing a 14% increase year-on-year[30]. - Profit and total comprehensive income increased by approximately 72% from approximately RMB642 million for the year ended 31 December 2020 to approximately RMB1,102 million for the year ended 31 December 2021[62]. - The basic and diluted earnings per share decreased by approximately 56% from RMB0.68 per share for the year ended 31 December 2020 to RMB0.30 per share for the year ended 31 December 2021[63]. Debt and Financial Ratios - As of December 31, 2021, the total cash to short-term debt ratio of the Group is 2.5 times, the net gearing ratio is 24%, and the liabilities to assets ratio after excluding contract liabilities is about 64%[9]. - The Group's net gearing ratio decreased by 17 percentage points from 41% as of 31 December 2020 to 24% as of 31 December 2021[75]. - The Group's liabilities to assets ratio decreased to approximately 64% as of 31 December 2021 from 82% as of 31 December 2020[75]. - The total cash (including restricted cash, pledged time deposits, and cash equivalents) increased to approximately RMB6,985 million as of 31 December 2021 from approximately RMB6,797 million as of 31 December 2020[70]. - The current ratio increased from approximately 1.13 times as of December 31, 2020, to approximately 1.38 times as of December 31, 2021[80]. - The proportion of short-term borrowings over total borrowings decreased from approximately 70% as of December 31, 2020, to approximately 29% as of December 31, 2021[80]. Market and Strategic Focus - In 2021, the Chinese real estate policy adhered to the principle that "houses are for living in and not for speculative investment," with measures such as the "three red lines" introduced to control the overheating of the market[9]. - The central government relaxed housing loan supply after August 2021 in response to the cooling real estate market, indicating a shift towards stable and healthy market development[9]. - The company aims to pursue high-quality growth and improve residential quality while enhancing brand reputation and consolidating development advantages[9]. - The company focuses on residential development and adheres to strict standards for profit rate, annualized return, and return on capital for projects[12]. - The company emphasizes customer orientation and aims to enhance product and service quality through initiatives like the MorePro product system and customer service platform[14]. - The company plans to maintain a proactive construction approach and implement a high turnover strategy to seize sales opportunities[24]. Land and Property Development - As of December 31, 2021, the Group had land reserves amounting to 9,846,448 sq.m., with 70 projects located in 28 cities in the Yangtze River Delta region[35]. - The Group acquired 9 new parcels of quality land in various cities, providing new land reserves of 1,208,236 sq.m. at a weighted average attributable land cost of approximately RMB4,901 per sq.m.[42]. - The Group's total land reserve includes completed properties available for sale or lease, properties under development, and properties held for future development[93]. - The Group's overall strategy includes expanding its property portfolio across various provinces, focusing on both completed and under-development projects[101]. - The Group's total attributable interest in property projects is 3,615,687 sq.m. with a total land reserve of 7,843,249 sq.m.[145]. Operational Efficiency and Management - The company aims to strengthen its organizational capacity and improve management levels, with a focus on "making a fresh start with humbleness" in 2022[12]. - The Group will focus on improving operational efficiency and enhancing core corporate competitiveness, including product competitiveness and brand awareness, in 2022[91]. - The Group aims to optimize its operation and financial management system and improve decision-making processes to enhance operational efficiency[92]. - The Group will continue to adopt sound financial control policies and optimize its capital and debt structure through diversified financing channels[92]. Stakeholder Engagement - The company expresses gratitude to all stakeholders for their support in 2021, highlighting the importance of collaboration[16]. - The likelihood of default in payments by joint ventures and associates is considered minimal, and no liabilities were recognized for financial guarantees provided[88].
港龙中国地产(06968) - 2021 - 年度财报